The energy price cap increased on October 1 and that affects 15 million customers. Anybody on default paying tariffs will see their costs increase by £139, shifting from £1138 to £1277. Prepayment customers will see prices shoot up by £153, going from £1156 to £1509.
This crisis has hit the world and it is largely down to the global pandemic. The pandemic has caused a shortage within lots of industries and businesses – the energy sector is no different. Throughout these unprecedented times, energy demand dropped to its lowest point since World War II; global gas production fell by 3.3% during 2020.
However, there was a resurgence in the demand for energy during the back end of 2020 in Asia, due to a very cold winter. That resurgence continued across the world when countries started to steadily abandon their strict lockdowns in favour of a more compromised outlook.
The energy shortage in the UK has come as a result of several factors, including low wind speed and the decommissioning of nuclear power plants – in tandem with the government’s desire for green energy.
Europe is also suffering from a rise in energy costs so Brexit is not necessarily to blame for the UKs plight. However, countries within the EU do trade efficiently with each other to keep prices at a stable level. The UK will not have this luxury and while they could, theoretically, find cheaper solutions outside of this market, energy prices are universally on the rise so it leaves them more susceptible to big rises in cost.
Switching energy providers
Switching providers
The comparison website Energy Helpline suggests that you could save upto £328 per-year by switching energy providers. This means that customers will have to be focused and on the ball in order to take advantage of oscillating costs. Many people will switch broadband providers when they see that a competitor is offering a significantly lower cost for new customers, before jumping onto another deal when newer incentives come out from alternative providers.
There are plans in place for automatic switching, a move that would see people across Britain automatically switched to energy providers with cheaper tariffs – counteracting the lack of loyalty for those who prefer to stick with one provider. Unfortunately for those affected, these plans do not come into place until 2024.
When it comes to switching providers, there are a few pointers that you should consider.
- Use last year’s energy use as a barometer to get the most accurate quote that you possibly can.
- Paying via direct debit is usually the cheapest form of payment, but check all of the options that are available to you.
- Picking a fixed tariff for price security
- Going paperless can help to cut small costs that would be attributed to sending paper statements.
- Check exit fees from the provider. Many will charge a fee if you wish to leave your current deal before it finishes, however, you can leave some contracts for free if you leave enough notice. Again, this should be stipulated in the contract before you sign it.
Thermostat
You could save around £70 per-year by using a room thermostat and programmer. Even turning down your thermostat by a single degree could save you a substantial amount of money.
Other household appliances
Radiator panels:
- Cost upto £30
- Cover 10 radiators
- £19 yearly saving when put into uninstalled walls
Draught proofing windows and doors:
- £25 approximate saving on your bills
LED bulbs:
- £30 yearly saving
- Use 80% less energy than standard bulbs would use
Smart meter:
- Can reduce a household’s electricity by 3%
- Can reduce gas usage by 2%
- Also give you more spending control
- Could cut £75 off your annual spend on water
These findings were taken from The Independent.
It is going to be a difficult winter for everybody in Britain and we all just have to sit tight and prepare for the inevitable avalanche of uncertainty in a world that is still trying to get back to a true sense of normality.
